-- Australia's heavy reliance on diesel imports is leaving it vulnerable to the current global supply shock and price increases resulting from the Middle East conflict, the Institute for Energy Economics and Financial Analysis said on Tuesday.
The world's largest diesel importer has come under mounting pressure in recent weeks, given heavy reliance on imports for roughly 87% of supply, with the fuel underpinning key sectors of the country's economy.
Amandine Denis-Ryan, the CEO of IEEFA Australia, highlighted significant scope for demand-side adjustments nonetheless.
This included measures such as eco-driving, improved maintenance, and logistics optimization, which could cut diesel use by 10% to 20% across key sectors within weeks.
Similarly, in mining, agriculture and railways, the report highlighted the need for improving idle-time, payloads and driver behaviors, to deliver savings of up to 40%, which can be critical during periods of increasing tight supplies like the past few weeks.
The report also flagged Australia's geographic isolation from major fuel exporters as a key vulnerability, warning that it could leave the country with a fuel crunch that could potentially last longer than other countries with energy supply vulnerabilities.